India’s Biggest Hotelier: 2025 Outlook, Goa Slowdown, and Making Money in Low Season

The Indian Hotels Company (IHCL) posted strong quarterly results Thursday and management expects double-digit revenue growth to continue into the second half of the year, helped by 30% more wedding dates in the calendar than usual.

Looking farther ahead, CEO Puneet Chhatwal said average room rates will be supported because of the “premium positioning” of many of its brands, the growing popularity of its loyalty program, and its substantial footprint in high-demand markets.

Expansion plans may also support growth for IHCL, India’s largest hotel operator. This week, it acquired Tree of Life, which runs boutique hotels, and it signed a management agreement with the owner of the Claridge Collection. The strategy leans heavily on asset-light growth.

IHCL aims to add 120 hotels to its pipeline, targeting 25 openings this fiscal year and 30 next year.

Quarterly revenue surged 28% year-on-year to nearly INR 19 billion ($227 million). EBITDA margins expanded 270 basis points to 29.9%.

Seasonal Shift in Hotel Profitability

IHCL is even making money during the low season. Historically, the April-September period, which forms the first half of the financial year, has been the lean season for the Indian hotel industry. But Chhatwal highlighted that this seasonality is evolving.

“What has changed in the hotel landscape in the Indian subcontinent is that you also make money in the first and second quarters,” he said. “If you were to go back 10 or 15 years ago, hoteliers waited for the rest of the year to make money. But now everybody, every brand, every company from April 1 starts making money.”

The Goa Slowdown

One of the only headwinds for IHCL and other hotel groups has been Goa, one of India’s famous southern destinations.

In the past year, IHCL’s hotels reported negative year-over-year declines in revenue-per-available room. However, the company remains committed to the coastal state.

On Thursday, it announced the opening of 122-key La Estoria Goa – IHCL SeleQtions in Candolim.  

“We are investing in the low season in Goa,” Chhatwal said. “A lot of investment has gone in because, during the last phase of Covid and coming out of the pandemic, Goa was the first destination and like a cash cow.” 

“When we announce the results of next quarter, you will see a different Goa.”

Moving Beyond Luxury

While Chhatwal touted his group’s “premium positioning” led by its Taj brand, he also said that IHCL’s non-luxury businesses are gaining traction, too.

Revenue for Ginger, its budget brand, grew 55% to INR 1.3 billion (about $15.4 million) in the quarter.

However, 60% of IHCL’s portfolio is still very Taj-centric, Chhatwal said. 

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.

Read the full methodology behind the Skift Travel 200.